# Frec

> Frec is a San Francisco fintech that brings direct indexing - a tax-optimization strategy long reserved for wealthy clients of private wealth managers - to everyday investors. Instead of buying an index fund, Frec customers own the underlying stocks of an index directly, which lets the platform automatically harvest tax losses, offset capital gains, and customize holdings, all for a 0.10% annual fee. Founded in 2021 by former Twitter and Instacart product leader Mo Al Adham and launched publicly in 2023, Frec also offers a portfolio line of credit, a high-yield treasury account, and tools to diversify concentrated stock positions.

- **Founded:** 2021
- **Headquarters:** San Francisco, United States
- **Founders:** Mo Al Adham (Founder & CEO)
- **Team size:** ~32 employees
- **Products:** Direct Indexing, Long Short Direct Indexing, Diversify, Portfolio Line of Credit, Treasury
- **Notable:** Emerged from stealth in October 2023 with $26.4M led by Greylock, Reached $100M in total assets within 9 months of public launch, Later surpassed $600M in assets under management

## Products & services

- **Direct Indexing** — Customers directly own the individual stocks that make up an index (S&P 500, Russell 1000/2000/3000, and more), enabling automated daily tax-loss harvesting, capital-gains offsetting, and customization - for a 0.10% annual management fee with a $20,000 minimum.
- **Long Short Direct Indexing** — A more advanced strategy that pairs long and short positions to increase tax-loss harvesting opportunities and potential tax alpha.
- **Diversify** — Lets customers bring in concentrated stock positions and transition them into a diversified index with minimal tax impact.
- **Portfolio Line of Credit** — A line of credit borrowed against a customer's portfolio at a variable rate of the Effective Federal Funds Rate + 1%, providing liquidity without selling holdings.
- **Treasury** — A high-yield treasury account for holding cash.
- **Trade** — Self-directed trading of individual stocks.
- **Mobile App** — iOS app that puts direct indexing, treasury, and portfolio credit in one place.

## Achievements

- Emerged from stealth in October 2023 with $26.4M led by Greylock
- Reached $100M in total assets within 9 months of public launch
- Later surpassed $600M in assets under management
- Expanded from a single index to 9+ direct indices (S&P 500, Russell 1000/2000/3000, CRSP ISS US Large Cap ESG, and more)
- Launched a mobile app and Portfolio Line of Credit in December 2024
- One of the first direct-to-consumer direct indexing platforms

## Latest updates

- **2023-10** — Frec emerges from stealth with $26.4M in seed and Series A funding led by Greylock and launches its direct indexing platform.
- **2024-07** — Reaches $100M in total assets within 9 months of launch; now offering 9 direct indices.
- **2024-12** — Launches a new mobile app and its Portfolio Line of Credit product.
- **2025-01** — Adds Diversify and additional indices (Russell 1000/2000/3000, CRSP ISS US Large Cap ESG); reported crossing $600M in assets under management.

## Links

- Website: https://frec.com
- LinkedIn: https://www.linkedin.com/company/frecfinance
- Twitter/X: https://twitter.com/frecfinance

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Profile page: https://yespress.io/frec
Published by YesPress — https://yespress.io
Last updated: 2026-07-11